Tax Benefits on Sukanya Samriddhi Yojana Scheme

There was saying as the future of the nations is in the hands of its children, whether its boy or girl both will play a major role in the development of the nation. India is the only country with a huge potential for growth in the feature and the growth is possible only in a comprehensive way.

Sukanya Samriddhi scheme was launched with the purpose to bridge the financial gap which prevents women from achieving their best. The small saving scheme is the idea of Prime Minister Narendra Modi and with good vision to provide for the education and marriage need for the girl child, providing her ample opportunity to fulfill her dreams.

This scheme is helpful to the most extent for the child and her parents/ guardians. The Tax benefits on this scheme certify that depositing isn’t too heavy on the case of a family.

Tax benefits under Sukanya Samriddhi Account

Those who enroll for Sukanya Samriddhi Account scheme the benefits will be offered as follows

  • The amount put in can be withdrawn after a girl attains 21 years or on closing the account. This amount is exempt from tax, ensuring that the girl child can use the amount in its total without having to pay tax on it.
  • This scheme accumulates interest which is compounded and credited to the account annually. This accumulated interest is excerpted from taxes, ensuring that the funds grow to their maximum potential.
  • Investments made towards this scheme are eligible for tax deduction under Section 80C of the Income Tax Act. This deduction is subject to a maximum of Rs 1.5 lakh towards this scheme.

Tax Deductions Eligibility Criteria

This scheme permits provisions for one depositor to deposit the amount on behalf of the girl child; it can be neither parents nor guardian.

Contributions towards this scheme are eligible for the tax deduction; only one depositor can claim tax exemptions on section 80C of the Income Tax Act. This means a parent or legal guardian can claim the exceptions but not both.

Sukanya Samriddhi Account scheme is a good scheme for both child and legal guardian, which offer tax incentives to both, to avail a bright future for the girl child.

So, why late take a step and join the scheme as possible as soon, I hope it helps to you. Please share your suggestions with us.

Also Read:

Sukanya Samriddhi Yojana Account Scheme Guideline & Rules

SSY Account Open, Eligibility & Documents Required

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